SME Automation and Digitalisation Facility (ADF)

Incentivise SMEs to automate processes and digitalise operations to increase productivity and efficiency.

Eligibility

Malaysian SMEs that fulfil the following criteria:

For Private Limited Companies (Sdn. Bhd.), Sole-Proprietorships, Partnerships and Professional Service Providers that fall within SME definition.
Private Limited Companies (Sdn. Bhd.): Business in operation for at least three (3) years.
Sole-Proprietorships, Partnerships and Professional Service Providers: Business in operation for at least five (5) years.
Registered with the Companies Commission of Malaysia (SSM), or authorities/district offices in Sabah and Sarawak, statutory bodies for professional service providers.
Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.
Malaysians residing in Malaysia that hold a minimum of 51% shareholding in the business.

Purpose of Financing

Purchase of equipment, machinery, computer hardware and software, IT solutions and services, technology support services and other intangible assets to enhanced productivity and efficiency (SMEs involved in the production and supply on activities/ project as stated is not eligible).

Note:

Legal documentation cost and agency fee to be included into the financing
Financing should not be used for refinancing of existing credit / financing facilities
This financing cannot be used to reimburse capital expenditure or working capital

Financing Amount

Sdn. Bhd.:

Sole-Proprietorship, Partnership, Professional Service Providers:

Note: A collective financing limit is applicable for SMEs with a common shareholder(s) equal to or more than 20% shareholding.

Financing Rate

Up to 4.00% p.a. (inclusive of 0.5% guarantee fees)

Financing Tenure

Up to ten (10) years

Guarantee Coverage

80% guarantee cover at 0.5% p.a. guarantee fee by Syarikat Jaminan Pembiayaan Perniagaan (SJPP)

Collateral / Security

1. Sdn. Bhd.:

Joint and Several Guarantee (JSG) by the following individuals:
- Directors of the company
- Shareholders holding more than thirty percent (30%) of the share capital.
- Key man / person regardless of the shareholding and directorship.

Corporate Guarantor holding more than fifty percent (50%) of the share capital of the customer.

2. Partnership:

Fees & Charges

No.	Fee Type	Charges
1	Stamp Duty	Actual Cost – As per Stamp Duty Act 1949 (Revised 1989): Principal Agreement – Ad Valorem of 0.5% of financing amount Secondary / Supplementary Agreement – Nominal of RM10 of each document
2	Legal Fees	Actual Cost
3	Processing Fee	Waived
4	Tawarruq Agency Fee	RM50 (RM25 of each ABPA and ABSA) Note: Tawarruq Agency fee costs RM50.00 for every Tawarruq transaction.
5	Late Payment Charges	Late payment charges (LPC) are as per BNM’s latest Guidelines on Late Payment Charges for Islamic Banking Institutions as well as Bank Islam Ta’widh clause.
6	Guarantee Fee	The Guarantee Fee is up to 0.50% per annum of the coverage amount, depending on the scheme offered by SJPP and subject to 8% Sales and Service Tax (SST). The Bank will finance only the first year of the SJPP Guarantee Fee. For subsequent years, the Guarantee Fee will be debited from the customer’s account with Bank Islam
7	Cancellation Fee	Based on actual cost (if any) for the preparation and registration of security documents that has been incurred by the Bank in connection with the facility including all expenses incurred during the claim process.

Availability of Fund

Until full utilisation

Click here to view Product Disclosure Sheet (ADF) – Bahasa Malaysia Version